"With such a deadly product, competition isn't attractive, so we've identified regulation as an attractive alternative that stands to benefit government and public health.

Professor Gilmore said: "The tobacco industry is likely to argue that this type of direct economic regulation is an extreme reaction, but it's hard to argue that nothing should be done given the extent of market power that these firms are enjoying and the number of deaths the sector causes.

"If it came to a choice between increasing income tax or capping the excess profits of companies whose products kill one in two users, I could hazard a guess which one the public would prefer."

Dr Jean King, Cancer Research UK's director of tobacco control, said that the idea was "an extremely interesting proposition".

She added: "Tobacco remains a uniquely dangerous product and we must find ways to try and stop the tobacco industry from attracting new customers. Tobacco is extremely addictive and will kill half of all long term smokers, the vast majority of whom will have started smoking before turning 18.

"Putting a cap on profits from tobacco would send a strong message to an industry that makes billions of pounds every year. Its products are extremely cheap to produce but carry a huge cost to the health and lives of far too many people. Smoking rates have continued to fall over time and we should be thinking about ending industry profits based on addiction and death."

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